Sensex, Nifty Log Worst Drop In Over Four Years As Rs 5 Lakh Crore Wiped Off

Indian equity investors lost about Rs 5.5 lakh crore today, according to data available on Bombay Stock Exchange. Of this, they lost Rs 4 lakh crore within the first 15 minutes of the opening trade.

That came after Indian indices ended lower, extending their declines for the sixth consecutive trading session.

The S&P BSE Sensex fell 3.64 percent, the most since August 2015, to end at 38,297.29 and the NSE Nifty 50 fell 3.7 percent, registering their steepest fall since August 2015, to close at 11,201.75. Both the indices ended at over four-month low. The broader markets represented by the NSE Nifty 500 Index slumped 3.58 percent.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

“I could see this easily going another 5-10 percent but it may not happen as quickly as the last 10 percent has happened,” Arvind Sanger, managing partner at Geosphere Capital Management, told BloombergQuint in an interaction. “I definitely don’t think this is the time to jump in with both hands and start bottom fishing,” he said.

Meanwhile, Rusmik Oza of Kotak Securities said that it is the ideal time to buy as the Nifty is in the oversold territory.

“Since the risk-reward ratio has turned favourable for the market, it is ideal to accumulate stocks keeping in mind the downside of 11,000 for the Nifty,” according to the Mumbai-based analyst.

The markets have entered the oversold zone as the fall has been ‘too-fast-too-soon’, Oza said in a mailed statement.

The Relative Strength Index on the Nifty was below 30 since Feb. 27, 2020, a level that indicates it is in the oversold zone.

“During past instances like coronavirus, the markets fell gradually and recovered gradually. This time, the fall has been vertical and that too in a matter of a few days. Going by past precedencies, the recovery in markets is equal or higher than the fall,” Oza said.

The market breadth was tilted in favour of sellers. About 1,566 stocks declined and 252 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Metal Index’s 6.8 percent slump.

Fear tightened its grip on global markets Friday, with stocks across Europe and Asia plunging a day after the worst rout on Wall Street since 2011.

• The Stoxx Europe 600 Index sank 4.2 percent as of 9:24 a.m. London time.
• Futures on the S&P 500 Index dipped 2.1 percent.
• Nasdaq 100 Index futures declined 2.3 percent.
• South Korea’s Kospi index decreased by 3.3 percent.
• The MSCI Asia Pacific Index sank 2.5 percent.

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Source: Bloomberg

Shares of TCNS Clothing extended gains for the fourth consecutive trading session. The stock rose as much as 3.8 percent to Rs 596.95.

Trading volume was double its 20-day average, Bloomberg data showed. The stock declined 31 percent in the past 12 months compared to a 7.3 percent gain in the Sensex.

Indian equities extended declines to trade at day’s low.

The S&P BSE Sensex fell 3.8 percent or 1,500 points to 38,342 and the NSE Nifty 50 fell 3.57 percent to 11,216.80. The 50-stock index is set for its worst drop since August 2016.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

Adani Gas

• Stock fell as much as 14.9 percent to Rs 125.30.
• Trading volume was more than 20 times its 20-day average.

IIFL Wealth

• Stock fell as much as 4.6 percent to Rs 1,442.
• Trading volume was almost 30 times its 20-day average.

Sundaram-Clayton

• Stock rose as much as 2 percent to Rs 2,035.75
• Trading volume was five times its 20-day average.

Future Consumer

• Stock fell as much as 19.9 percent to Rs 15
• Trading volume was more than five times its 20-day average.

Futures on the Dow Jones fell 360 points, while contracts on the S&P 500 fell 46 points. Meanwhile, Nasdaq futures fell 136 points.

Key highlights from the conversation:

• The pressure will continue as it is stemming from China. It puts big pressure on the supply chain for people around the world. About 80 percent of all raw materials globally come from China.

On Recovery:

• If Trump decides to lower tax rates again or provides some assistance that can help the situation.
• But the fact of supply chain disruption has its consequences which will be seen in the earnings.

On India

• India looks pretty good as so many people invest in gold. With gold prices doing well in this kind of environment, that means India is in a pretty good position.
• Going forward, the relation between India-U.S. should get better after Trump's visit. This will provide additional stimulus to the economy.

The yield on the 10-year note fell nearly to basis points to 6.39 percent after falling as much as three basis points earlier.

“The drop in the local currency is causing foreigners to exit rupee debt,” Bloomberg reported quoting a trader at a foreign bank.

“The sharp drop in offshore OIS is also leading to overseas investors selling bonds onshore,” the report added, quoting another trader.

Bloomberg did not report the details of the traders as they were asked not to be identified since they were not authorised to speak publicly.

“Since the risk-reward ratio has turned favourable for the market, it is ideal to accumulate stocks keeping in mind the downside of 11,000 for the Nifty,” according to Rusmik Oza of Kotak Securities.

The markets have entered the oversold zone as the fall has been ‘too-fast-too-soon’, the Mumbai-based analyst said in a mailed statement.

The Relative Strength Index on the NSE Nifty 50 was below 30 since Feb. 27, 2020, a level that indicates it is in the oversold zone.

“During past instances like coronavirus, the markets fell gradually and recovered gradually. This time, the fall has been vertical and that too in a matter of a few days. Going by past precedencies, the recovery in markets is equal or higher than the fall,” Oza said.

The Brent crude fell for the sixth consecutive trading session and declined as much as 3.5 percent to $50.59 a barrel, the lowest since December 2018.

Fear tightened its grip on global markets Friday, with European stock futures tumbling 4 percent and U.S. contracts signalling yet more pain after the biggest one-day rout on Wall Street since 2011.

• S&P 500 futures fell 1.6 percent as of 6:20 a.m. in London. The S&P 500 Index lost 4.4 percent on Thursday.
• Euro Stoxx 50 futures slumped 3.9 percent.
• Japan’s Topix index lost 3.7 percent by the close.
• Hong Kong’s Hang Seng index slid 2.7 percent.
• The Shanghai Composite retreated 3 percent.
• South Korea’s Kospi index fell 3.4 percent.
• Australia’s S&P/ASX 200 Index declined 2.9 percent.

Get your daily fix of global markets here.
Source: Bloomberg

Indian equity investors lost nearly 5 lakh crore today, according to data available on Bombay Stock Exchange. Of this, they lost Rs 4 lakh crore within the first 15 minutes of the opening trade.

That came after Indian equities traded lower, extending their declines for the sixth consecutive trading session. The S&P BSE Sensex fell as much as 3.2 percent or 1,283.56 points to 38,462.10 and the NSE Nifty 50 fell as much as 3.31 percent to 11,248.05.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

About 15 lakh shares of Vedanta changed hands in a large trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Heritage Foods fell as much as 8.1 percent, the most since Feb. 17, 2020, to Rs 345.20.

The company’s board approved the sale of the dairy plant located at Bhambri Village in Punjab, according to its statement to the exchanges. The company will receive Rs 21.2 crore from the planned sale, the statement added.

The stock traded at 25 times its estimated earnings per share for the coming year, according to Bloomberg data.

Indian equity investors lost more than Rs 4.5 lakh crore today, according to data available on Bombay Stock Exchange. Of this, they lost Rs 4 lakh crore within the first 15 minutes of the opening trade

That came after Indian equities traded lower, extending their declines for the sixth consecutive trading session. The S&P BSE Sensex fell as much as 3 percent or 1,194 points to 38,551.54 and the NSE Nifty 50 fell as much as 3.12 percent to 11,269.80.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

All the 11 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty Metal Index’s 5.3 percent fall.

Shares of BASF India extended gains for the third consecutive trading session. The stock rose as much as 4.7 percent to Rs 1,115, the highest since Sept. 24, 2019.

Trading volume was almost 11 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Shares of NLC India pared opening losses and extended gains for the second consecutive trading session. The stock swung from a fall of as much as 3 percent to gain as much as 3.7 percent.

The scrip advanced 11 percent in two trading sessions. Trading volume was more than 20-times its 20-day average, Bloomberg data showed. NLC India traded at 9.4 times its estimated earnings per share for the coming year.

Shares of 3M India halted their nine-day losing streak, their longest losing streak since January 2004. The stock rose as much as 2.1 percent to Rs 20,999.70.

The stock declined 9.9 percent in the past 12 months compared to a 11 percent fall in the Sensex.

Shares of Mishra Dhatu Nigam swung from a gain of as much as 5.2 percent to fall as much as 5.7 percent. The stock hit all all-time high at Rs 266 in the opening trade.

The scrip fell in three out of four trading sessions. Trading volume was almost nine times its 20-day average, Bloomberg data showed.

About 59 lakh shares of Bharti Infratel changed hands in a large trade, Bloomberg data showed. Buyer and sellers were not known immediately.

Nifty’s 11,600 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire on March 5, dropped 71.22 percent to Rs 38.35. About 4.44 lakh shares were added to the open interest which stood at over 13.76 lakh shares.

Shares of Motherson Sumi extended fall for the fourth consecutive trading session. The stock fell as much as 6.8 percent to Rs 101.65, the lowest since October 2019.

S&P has revised the credit outlook of Motherson Sumi’s subsidiary Samvardhana Motherson Automotive Systems Group B.V to Negative.

The Relative Strength Index was below 30, indicating that the stock may be overbought, according to Bloomberg data.

Indian equity investors lost more than Rs 4 lakh crore within the first 15 minutes of the opening trade, according to data available on Bombay Stock Exchange.

That came after Indian equities opened lower, extending their declines for the sixth consecutive trading session. The S&P BSE Sensex fell as much as 2.9 or more than 1,100 points to 38,601.67 and the NSE Nifty 50 fell as much as 2.93 percent to below 11,300.

Shares of the automakers and auto-components manufacturers declined, led the fall in Tata Motors Ltd.

Shares of Future Consumer extended slump for the tenth consecutive trading session. The stock fell as much as 12.1 percent to Rs 13.50, the lowest since August 2015.

The Relative Strength Index was below 30, indicating that the stock may be overbought, according to Bloomberg data. The scrip slumped 28 percent in the past five days and declined 38 percent n the past 30 days.

The NSE Nifty Bank Index fell for the fourth consecutive trading session. The 12-share gauge fell as much as 2.56 percent to 29,414.45 to trade below its crucial 200-day moving average of 30,187.26.

The declines were led by Yes Bank Ltd., Punjab National Bank and Bank of Baroda.

Indian equities opened lower, extending their declines for the sixth consecutive trading session.

The S&P BSE Sensex fell as much as 2.55 percent to 1,014 points to 38,731.29 and the NSE Nifty 50 fell as much as 2.58 percent to 11,330. The broader markets represented by the NSE Nifty 500 Index fell as much as 2.8 percent.

The indices were tracking the negative cues from the global peers amid fears about the coronavirus. Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

The market breadth was tilted in favour of sellers. About 1,259 stocks declined and 201 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 3.8 percent fall.

Index Futures

• Nifty March futures closed at 11,629.2, a discount of 4 points
• Nifty futures across series open interest rose 10 percent, added 17 lakh shares in open interest
• Nifty Bank March futures closed at 30,255.7, a premium of 68.7 points
• Nifty Bank futures open interest across series rose 2 percent, added 30,000 shares in open interest
• Rollover: Nifty at 77.6 percent, Nifty Bank 75 percent

Options

• Nifty PCR at 1.37 versus 1.01 (across all series)

Nifty Weekly Expiry: March 5

• Max open interest on call side at 12,000 (17,700 shares)
• Max open interest on put side at 11,600 (11.5 shares)
• Open interest addition seen in 11,700C (+12.5 lakh shares), 11,600C (+8.7 lakh shares)

Nifty Monthly Expiry: March 26

• Max open interest on call side at 12,000 (18.5 lakh shares)
• Max open interest on put side at 11,800 (23.9lk shares)

• Godrej Industries promoter Anamudi Real Estates LLP bought 1.2 lakh shares from Feb. 24 -25.
• L.G. Balakrishnan & Bros promoter V.Rajvirdhan sold 20,000 shares on Feb. 26.
• Zensar Technologies promoter Instant Holdings Limited bought 25,908 shares on Feb. 24.
• Ultramarine & Pigments promoter Sridhar Sundarrajan sold 5,473 shares on Feb. 26.
• Som Distillieries & Breweries promoter Som Distilleries Private Limited bought 2000 shares on Feb. 26.
• ADF Foods promoters acquired 2,400 shares on Feb. 26.
• Aarti Drugs promoter Jay Manilal Savla (Momi's Trust) sold 500 shares on Feb. 24.
• Bajaj Finserv promoter Kumud Bajaj bought 38,300 shares from Feb. 25 – 26
• Astec Lifesciences Limited promoter Godrej Agrovet Limited bought 7424 shares from Feb. 20 – 24
• Just Dial promoter Anita Mani bought 50,000 shares on Feb. 25.
• (As Reported on Feb. 27)

• Prince Pipes to meet several fund houses such as HDFC AMC, Principal MF, Quest Capital among others on Feb. 28.
• Tata Steel to meet Macquarie Capital and Aditya Birla Life insurance on March 3 and 4 respectively.

• PNB Housing Finance’s price band revised to 20 percent.

Jai Corp

• Standard Chartered Bank (Mauritius) Limited A/C Valiant Mauritius Partners Offshore Limited buys 70.56 lakh shares (4 percent equity) at Rs 94.1 each.
• Morgan Stanley Mauritius Company Ltd sells 70.56 lakh shares (4 percent equity) at Rs 94.1 each.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.53 percent to 71.94 against the greenback.

Indian equities are set to open lower.

The S&P BSE Sensex fell 1.54 percent to 39,120 during the pre-market trade and the NSE Nifty 50 fell 2.1 percent to 11,387

• Bank of Baroda sold its entire 4.9 percent stake in Petronet MHB Ltd. for Rs 52.56 crore. The deal is expected to be completed in Q4FY20.
• HPCL and ONGC will acquire 17.3 percent stake in Petronet MHB Ltd. for Rs 185.38 crore. After the acquisition, the companies will hold a 50 percent stake in Petronet MHB Ltd. The transaction is expected to be completed in Q4FY20.
• HDB Financials plans to raise up to Rs 1,500 crore from bond sale.
• Dhanlaxmi Bank has appointed Sunil Gurbaxani as Managing Director & Chief Executive Officer of the bank.
• GTPL Hathway says promoter Jio Content Distribution Holdings Private Limited to sell up to 43.12 lakh shares of the company via OFS. The floor price for the OFS has been fixed at Rs 63 per share (4 percent discount from yesterday’s closing price).
• Tata Motors: India CCI has reviewed antitrust complaint against Tata Motors: Reuters.
• Lemon Tree Hotels announced its debut in Bhutan, with the launch of Lemon Tree Hotel, Thimphu. This hotel is the second international launch for the company, with an already operational hotel in Dubai. Further hotels will be signed in Nepal and Bhutan, which will open in the future, the company said in the press release.
• RITES’ OFS in the non-retail portion was subscribed 1.32 times.
• S&P has revised the credit outlook of Motherson Sumi’s subsidiary Samvardhana Motherson Automotive Systems Group B.V to Negative.
• Sintex industries will not consider a stake sale in BVM overseas due to non-receipt of the favourable deal.
• Pidilite Industries will acquire a 70 percent stake in Tenax India Stone Products Pvt. Ltd. (Tenax India) for Rs 80 crore. Tenax Italy (parent) is the leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone Industry.
• Mahindra Lifespace Developers will acquire land parcel in Pune for development of a residential project.
• Petronet LNG and Tellurian Inc. will execute a supplementary MoU aimed at facilitating the terms of the pact signed by the two companies in Sept. 2019 for the driftwood project.

• The S&P 500 tumbled 4.4 percent to close at the lowest levels of the day. The decline of more than 10 percent since last Friday has the benchmark on pace for its worse week since the 2008 global financial crisis and helped push the index into what is known as a correction.
• Oil fell for a sixth day in Asia as the coronavirus spread further outside of China, roiling financial markets.

Get your daily fix of global markets here.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.71 percent to 11,410 as of 8:25 a.m.

The global slide in equity markets showed no signs of easing Friday, with Hong Kong, Japan and Australia all losing more than 2 percent amid fears about the coronavirus.

Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.